Updated: November 13, 2024
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Enter your card's cash back rates and your estimated spend for each category per year to estimate your annual cash back rewards. For flat-rate cash back cards, just enter your entire annual spend on the first line and select the "Other Spendings" category.
Many of our credit card reviews have custom rewards calculators. Some of the most popular cash back calculators:
If you want to skip the calculators, check out our ranking of the Best Cash Back Cards. We collected and reviewed 32 data points for each of the top 60 cash back credit cards out there including the expected cash back from each card.
Calculating cash back rewards is straightforward: multiply your spending by the cash back rate. However, the way cash back actually works may be more complicated for some cards due to bonus categories, which cap your bonus rates after you spend a certain amount. In some cases, they may also require activation.
Here’s how to use our cash back calculator to help you estimate your cash back:
Choose from options like Groceries, Dining, Transportation, Shopping, Utilities, Health and Wellness, Entertainment or Other.
Input the percentage rate your card offers for the selected category.
Enter the amount you expect to spend in that category.
Use the "Add a Category" button to include more spending categories or the "delete" button to remove any.
As you enter your details, the cash back amount will automatically update.
If your card has a cap on higher cash back rates, enter two lines: one for spending up to the cap at the higher rate and another for spending beyond the cap at the lower rate (usually it’s 1%).
To help you understand how the cash back calculations work and how much you can earn, we've provided example calculations for two popular credit cards. These examples will show you the potential rewards based on typical spending patterns.
We’ll use a spending profile that’s similar to a typical American household:
This totals $22,000 of credit card spending annually or $1,833 per month.
The Capital One Quicksilver Cash Rewards Credit Card is a great example for understanding how to calculate cash back rewards. This card offers unlimited 1.5% cash back on every purchase, every day.
To estimate the cash back from the QuicksilverOne in the calculator for the everyday 1.5%:
With this simple setup, the calculator will calculate $330 as your cash back rewards for the year.
The Blue Cash Everyday Card from American Express card is a great example of a cash back card with multiple bonus categories.
The Blue Cash Everyday card’s cash back earnings structure is:
To estimate the rewards in the cash back calculator with our spend profile, follow these steps:
Enter your grocery spending: For groceries, select "Groceries" as the spend category, enter "3" for the cash back rate and input your expected spending up to $6,000. Since the grocery spending from our example profile exceeds $6,000, we would add another line for "Groceries," enter "1" for the cash back rate and input the amount over $6,000.
Enter your online shopping spending: For online retail purchases, select "Shopping," enter "3" for the cash back rate and input the $1,000 from our sample profile. Even though there’s a cap on the bonus reward, since we're not spending more than $6,000, we don’t need a second line like we did for groceries.
Enter your gas spending: Similarly, for gas, select "Transportation," enter "3" for the cash back rate and input the expected spend of $3,000.
For all other purchases, select "Other Spending," enter "1" for the cash back rate and input the expected spending of $10,000.
You should have an estimated cash back of $420.
In this example, the Blue Cash Everyday provides better cash back than the Quicksilver. However, if your spending were different, you may conclude differently. For example, if you dine out often, you may find the Quicksilver to be the better card for rewards.
When we did our full head-to-head review of the Quicksilver vs. Blue Cash Everyday we found the Quicksilver card to be slightly better overall.
But what if you had both cards? You could get 1.5% cash back on all of your purchases that weren’t included in the 3% categories of the Blue Cash Everyday. To calculate this, you’d go back to what you entered for the Blue Cash Everyday card and change the 1% values to 1.5%.
This pairing can be a smart move, but you’d only make $50 more. Ask yourself if it's worth the trouble to juggle an additional card — it may or may not be, depending on your spending and financial management habits.
In our experience, 2–3 credit cards in active use increases your rewards without adding too much complexity. However, make sure you can pay off your cards each month in full, no matter how many you have. Interest charges will quickly wipe out any cash back earnings if you're running a balance.
Our cash back calculator can help you evaluate potential cash back earnings, but you should also consider these other factors when choosing a cash back credit card:
Annual Fee: Some cards offer higher cash back rates but come with an annual fee. Ensure the rewards you earn outweigh this cost.
Credit Score Requirements: Make sure your credit score aligns with the card’s recommended credit.
Penalties: Look at the penalty rates and fees. A card with high penalties can quickly erode your rewards.
Intro Purchase APR: Some cards offer a 0% introductory APR on purchases, which can be beneficial if you plan to carry a balance initially.
Issuer: Some card issuers offer better customer service and overall experience. American Express is the standout in this category for customer satisfaction.
Welcome Offer: You don’t want to chase welcome offers, but they can help you make your decisions.
If you’re looking for cash back card ideas, our ranking of the best cash back cards can help you narrow down your options.
To calculate cash back rewards, multiply your spending in each category by the cash back rate for that category. For example, if you spend $500 on groceries with a card that offers 3% cash back on groceries, you would earn $15 in cash back.
If a spending category is missing, you can use the "Other Spending" category to input your spending and cash back rate. Since you're putting in the cash back rates yourself, you can add lines and pick whichever category helps you remember.
To include an annual fee in your cash back calculations, subtract the annual fee from your total cash back earnings. For example, if you earn $300 in cash back but the card has a $95 annual fee, your net cash back would be $205. This helps you determine if the rewards outweigh the cost of the card or to compare it to a no-annual fee cash back card.
Yes, a 5% cash back rate is considered very good. However, 5% rates are often limited to specific categories and/or have spending caps that make them less appealing than they may sound. Read the card's terms to understand the limitations before diving in. If you're looking for 5% cards, check out our rating of the best 5% cash back cards.
To maximize your cash back rewards, use cards offering higher rates for your biggest spending categories. If you’re really interested in maximizing your rewards, keep an eye out for special offers and promotions — just don’t get tricked into spending more than you normally would.
To compare cash back credit cards, look at the cash back rates, categories, spending caps and any annual fees. Use a cash back calculator to estimate your rewards based on your spending habits. Comparing these factors will help you choose the cash back card that offers the best value.
Whether cash back credit cards are better depends on your spending habits and preferences. Cash back cards offer straightforward rewards, while other rewards cards may offer points or miles that can be more valuable if you travel frequently. It's important to consider what type of rewards you will use most and compare the options available.
About Doug Milnes, CFA
Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.
Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.
